China unloading dollars to buy gold????

Both gold and silver have broken down from a narrow trading range. Both are volatile, but nothing significant is happening.


From The BusinessInsider.com:

Citi: China Sold Their Treasuries Because They Want To Buy Tons Of Gold

In regards to whether or not China truly sold down its holdings of U.S. treasuries recently, the situation remains A bit murky. But Citi's Alan Heap thinks it happened for sure.

Moreover, he thinks China has a plan for the cash they pulled out of the U.S. -- They'll use it to buy 191 tonnes of gold from the IMF. Read it HERE.

This is certainly a possibility, but is it fact? We may find out in the near future. Remember Japan was the biggest buyer of US debt and surpassed China as the holder of the largest share of US debt.

From LewRockwell.com:

Central Banks Are On the Defensive

By Gary North

All over the Western world, central banks are under pressure from their governments to inflate. Governments are not satisfied with short-term interest rates at historic lows, such as a federal funds rate of 0% to 0.25% in the United States. Politicians want rapid economic growth, and they are convinced that this is possible after a major recession only with more fiat money. In short, they have accurately understood the message of their college-level textbooks. This is what textbooks have been saying for over 50 years. This is the new, improved Keynesianism. Keynes focused on the need for large government deficits and increased government spending, not monetary inflation. The new Keynesianism wants large government deficits and lots of fiat money. Read it HERE.

This article clearly presents valid reasons for the Fed's fear of audit. This is an important read.

From PrisonPlanet.com:

Update: Citigroup Says Feds Ordered 7 Day Restriction On Bank Withdrawals

Monday, February 22, 2010

A new advisory being sent by America’s third largest bank to its account holders has stoked fears that major financial institutions could be preparing for old fashioned bank runs if the economy takes a turn for the worse.

Originally reported by John Carney over at the Business Insider Website, Citigroup is sending the following information to customers along with their bank statements.

“Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change.” Read it HERE.

What would you do if you could not get your cash from your bank? This is a valid question and should be considered by all.

From TownHall.com:

Happy 1st Birthday, Tea Party Movement!

By Chuck Norris

It's still difficult to believe that last week, President Barack Obama actually celebrated Feb. 17 as the anniversary of his stimulus plan (aka the American Recovery and Reinvestment Act of 2009), in which Washington borrowed $862 billion on American taxpayers' credit. Celebrate the piling of roughly $1 trillion on the backs of our posterity? Call me clueless, but I never have considered easing present circumstances by going into a massive amount of debt as an answer to anyone's economic recovery and longevity. Read it HERE.

From TownHall.com:

Economic Whodunit

by Thomas Sowel

During bad times, the blame game is the biggest game in Washington. Wall Street "greed" or "predatory" lenders seem to be favorite targets to blame for our current economic woes.

When government policy is mentioned at all in handing out blame, it is usually blamed for not imposing enough regulation on the private sector. But there is still the question whether any of these explanations can stand up under scrutiny. Read it HERE.

Situation normal with no solutions only passing the buck around. Washington business as usual.

Miners from Scottrade.com:

Currencies from Kitco.com:

Some prices: FVITF 2.1943; BYDDF 8.02 (nice upward move); XDSL 0.0265; SNWT 0.12 (What's wrong here? Not looking good!); DOW off 68 to 10315.97; Gold off 7 to 1105.60; Silver off 0.32 to 15.89. Not a lot to about which to smile and cheer.

What sad days we would be having without King Jesus and His Sovereignty over all. Rejoice in Him. After all, every good and perfect gift originates with Him and our joy comes from Him or not all. Praise Him daily!

Best to each, Doug